MOOWR

November 28, 2024

Manufacture and Other Operations in Warehouse Regulations (MOOWR)

• Vide the Manufacture and Other Operations in Warehouse Regulations 2019, (here in after referred to as MOOWR,2019) was introduced in 2019 to boost the MAKE IN INDIA Mission. This scheme is based up on Section65 of the Customs Act, 1962, which provides for manufacture and other operations in a Customs bonded warehouse.
• Under this program a unit can import goods (both inputs and capital goods) under customs duty deferment with no interest liability. There is no investment threshold or export obligation. The duties are fully remitted if the goods resulting from such operations are exported. Import duty is payable only if the resulting goods or imported goods are cleared in the domestic market (ex-bonding).

The salient features of MOOWR:

• Improved liquidity with deferment of import duty and no interest liability.
• Allows procurement of GST compliant goods from the domestic market for use in manufacture and other operations in a Section 65 unit.
• A single digital account for ease of doing business and easy compliance.
• Enables efficient capacity utilization, as there is no limit on quantum of clearances that can be exported or cleared to the domestic market.

Who is eligible:-

• A person who has been granted a licence for a warehouse under Section 58 of the Customs Act, in accordance with Private Warehouse Licensing Regulations, 2016.
• A person can also make a combined application for licence for a warehouse under Section 58, along with permission for undertaking manufacturing or other operations in the warehouse under Section 65 of the Act.
• The persons mentioned have to be a citizen of India or an entity incorporated or registered in India.

Import of Raw Material without BCD and IGST

• Raw Materials can be imported and deposited in the licensed warehouse without payment of BCD and IGST. No interest liability arises when the duties are paid at the time of ex- bonding the resultant goods. The duties (without any interest) are to be paid only when the resultant goods are being cleared for home consumption.

Import of inputs without payment of duty

In the case of goods other than capital goods-inputs are imported, the import duties (BCD, Cess and SWS)stand deferred till they are cleared from the warehouse for home consumption, and no interest is payable on duty.

In case the finished goods are exported, the duty on the imported inputs(both BCD and IGST stands remitted i.e. they will not be payable. The duty deferment is with out any time limitation.

. Simultaneous  availment of IGCR along with MOOWR. The MOOWR unit may avail IGCR exemption along with duty deferment under   MOOWR simultaneously